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However you plan to exit your business, Connolly Accountants Ltd can help you to minimise your liability to tax. We have helped many firms in the Stony Stratford area and would welcome the opportunity to work with you.
At some point you will want to stop working in your business and either sell up, in which case a business exit plan is crucial and could make all the difference to your long-term personal finances. Alternatively, you may wish to hand over the reins to your successors, in which case good planning will also help to ensure a smooth transition.
Important issues to consider include:
If your business has a market value, or if you are looking to your business to provide you with a lump sum on sale, it is important to start planning in advance, especially if you envisage realising the value of your business in the next few years. Selling your business is a major personal decision and it is very important to plan now if you want to maximise the net proceeds from its sale.
You will need to consider:
We can help with these considerations.
Up-to-date management accounts and forecasts for the next 12 months and beyond will be close to the top of the list of the information which you will need to make available to prospective purchasers.
Anyone who is considering buying your business will want to be clear about the underlying profitability trends. Are profits on the increase or declining? Historical profits drive the value attributable to many businesses and therefore a rising trend in profitability should result in an increase in the business’s value.
This means that profitability planning is particularly important in the years leading up to the sale.
A professional valuation will put you on more solid ground than educated guesswork. We can work with you to determine how you can add value to your business.
When considering business valuations, some of the key questions to ask are:
It is important to consider a number of factors when deciding on the best time to sell your business. These could be factors that may influence potential buyers as well as your own personal circumstances.
Personal factors to consider might include:
Meanwhile, business questions might be:
As a basic rule, CGT is charged on the difference between what you paid for an asset and what you receive when you sell it, less your annual CGT exemption if this has not been set against other gains. There are several other provisions, which may also need to be factored into the calculation of any CGT liability.
CGT reliefs can reduce a 24% CGT bill significantly. It is vital that you consult with us about the timing of a sale and the CGT reliefs and exemptions to which you might be entitled.
The taxable gain is measured simply by comparing net proceeds with total cost (including costs of acquisition and enhancement expenditure). The rate of tax depends on your overall income and gains position for 2025/26. Gains will be taxed at 18% to the extent that your taxable income and gains fall below the higher rate threshold and 24% thereafter. A special tax relief, Business Asset Disposal Relief (BADR), is available for those in business, which may reduce the tax rate on the first £1 million of qualifying lifetime gains to 14%. This rate will increase to 18% for disposals on or after 6 April 2026. This is targeted at working directors and employees who own at least 5% of the ordinary share capital of the company and the owners of unincorporated businesses.
The relief is available to individuals on the disposal after two complete qualifying years of:
To qualify for BADR, the company needs to be an individual’s personal company where the individual must:
They must also satisfy one of the following tests:
All planned transactions require careful scrutiny to ensure the available BADR is maintained. Remember to keep us in the picture – we are best placed to help and advise if you involve us at an early stage. Investors’ Relief (IR) also provides a 10% rate with a lifetime limit of £10 million for each individual. The main beneficiaries of this relief are external investors in unquoted trading companies.
CGT is normally only chargeable where the taxpayer is resident in the UK in the tax year the gain arose, although the provisions of any double taxation treaty need to be checked. CGT may not apply where the taxpayer becomes non-UK resident before the disposal and remains non-resident for tax purposes for five complete tax years.
There is no liability to CGT on any asset appreciation at your death.
If you are in the Stony Stratford area and would like advice on tax planning strategies for your business, including business exit strategies, please contact Connolly Accountants Ltd .
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Tessa Holden 2025-03-19 Trustindex verifies that the original source of the review is Google. Very helpful and knowledgeable highly recommend Tina Holton 2025-03-02 Trustindex verifies that the original source of the review is Google. Received excellent advice, Dan was quick to respond and explained options thoroughly, would highly recommend Mark Barber 2025-02-18 Trustindex verifies that the original source of the review is Google. Been with Connolly Accountants for sometime now and I can't fault them, I would highly recommend Josh Bridges. Samantha Tarbit 2025-01-31 Trustindex verifies that the original source of the review is Google. Connolly Accountants stands out as a modern, digitally-forward accounting firm that delivers exceptional service to businesses of all sizes. After 5-6 years of experience using the firm, they proved to be an outstanding choice for businesses seeking efficient, technology-driven accounting solutions. HIGHLY RECOMMENDED for businesses seeking a modern, efficient, and client-focused accounting partner. Ciara Higgins 2025-01-28 Trustindex verifies that the original source of the review is Google. I worked with Thomas who was really helpful, worked incredibly fast with my tax return - highly recommend Nova Norris 2025-01-16 Trustindex verifies that the original source of the review is Google. Absolutely excellent service. Very professional, helpful and understanding. Would definitely recommend. Michael Flock 2025-01-16 Trustindex verifies that the original source of the review is Google. I have used Connolly’s for the last few years as my accountants and bookkeepers and have been delighted with their service and advice. My bookkeeper made herself readily available at all hours and made life so easy and In terms of tax advice , staff like Josh were a godsend saving me time and effort. I would have no hesitation in recommending Connolly’s to anyone looking for a great proactive accountancy firm. Richard G. Jewell 2025-01-15 Trustindex verifies that the original source of the review is Google. For boring reasons I had to submit a tax return this year. I engaged Connolly Accountants and their chap Dan Rust was put on the job. Nice guy, a light and pleasant sense of humour, and he did the number crunching and form filling with ruthless efficiency. The price was very reasonable too. Can't praise Connolly's and Dan and Alana enough. Thank you. Matthew Williams 2024-12-04 Trustindex verifies that the original source of the review is Google. Great service from Thomas and the rest of the team as usual!
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